When it comes to owning property for business purposes, one of the unavoidable costs that can weigh heavily on your finances is business rates. These rates are taxes that commercial property owners need to pay to the local government. However, did you know that there are certain ways to legally avoid paying business rates on empty property? In this article, we will explore some of the strategies and tips to help you navigate avoiding business rates on empty property.
1. Temporary occupation
One of the simplest ways to avoid paying business rates on empty property is by temporarily occupying the space. In most regions, properties that are empty for a short period of time are exempt from business rates. By temporarily using the property for storage or conducting temporary activities, you can benefit from this exemption. However, it’s important to make sure that the occupation is genuine and not just a tactic to avoid paying rates.
2. Charitable occupation
Another way to avoid business rates on empty property is by allowing a charity to occupy the space. Properties that are used for charitable purposes are usually exempt from business rates. By allowing a charity to use your property for their activities, you can save money on business rates while also contributing to a good cause. Make sure to formalize the agreement with the charity to avoid any legal issues.
3. Renovation and redevelopment
If you have an empty property that requires renovation or redevelopment, you may be able to apply for exemption or relief on business rates. Properties undergoing substantial works may be eligible for relief on business rates. This can be a great way to avoid paying rates while improving the property for future use. Make sure to check with your local government on the specific criteria for receiving relief on business rates for renovation projects.
4. Small business rate relief
If you own a small business and have an empty property, you may be eligible for small business rate relief. This relief can significantly reduce the amount of business rates you need to pay on your empty property. To qualify for small business rate relief, your property must have a rateable value below a certain threshold and meet other criteria set by the local government. This can be a great option for small business owners looking to save on costs.
5. Vacant property relief
In some cases, properties that have been empty for a long period of time may qualify for vacant property relief. This relief allows property owners to claim exemption from business rates for a certain period while the property remains empty. Vacant property relief can provide much-needed financial relief for property owners struggling to find tenants or buyers for their empty properties. Make sure to check with your local government on the specific criteria for claiming vacant property relief.
6. Repurposing the property
If you are struggling to fill your empty property with traditional tenants, consider repurposing the space for alternative uses. For example, you could convert the property into a co-working space, art gallery, or pop-up shop. By repurposing the property, you can attract a different clientele and potentially qualify for exemptions or reliefs on business rates. Think outside the box and explore creative ways to make use of your empty property while also saving on costs.
In conclusion, there are several strategies and tips that property owners can use to legally avoid paying business rates on empty property. From temporary occupation to charitable use, renovation projects to small business rate relief, there are options available for property owners looking to save money on business rates. By understanding the criteria and requirements set by the local government, property owners can navigate the process of avoiding business rates on empty property effectively. Consider the options mentioned in this article and choose the best strategy that aligns with your goals and circumstances.